Home > Term: Pre-tax account
Pre-tax account
An account in which contributions are subtracted from an employee's pay before withholding income tax and Social Security. This ultimately reduces the account-holder's tax liability, since taxes are based on income minus the account contribution.
- Part of Speech: noun
- Industry/Domain: Health care
- Category: General
- Company: CIGNA
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- Harry8L
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(London, United Kingdom)